Prices of lithium-ion battery packs fall 14% in 2023, BNEF finds

The price of lithium-ion battery packs has fallen 14% this year, reaching a record low of USD 139 (EUR 127) per kWh and reversing the unprecedented rise observed in 2022, according to a new BloombergNEF (BNEF) report, unveiled on Monday.

The decline reflects raw material and component price decreases, increased production capacity across the battery value chain, as well as slower demand growth than some industry expectations.

Battery demand across electric vehicles and stationary energy storage is still seen to expand 53% year-on-year to 950 GWh in 2023, the research firm said.

China had the lowest average battery pack prices, at USD 126 per kWh, while in the US and Europe they were 11% and 20% higher, respectively.

For battery electric vehicle packs, prices were USD 128 per kWh.

BNEF projects that average battery pack prices will fall again next year, down to USD 133 per kWh in real 2023 dollars and that they should decline further to USD 113 per kWh in 2025 and USD 80 per kWh in 2030.

Yayoi Sekine, head of energy storage at BNEF, noted that localisation efforts the US and Europe will add a layer of complexity to how battery prices shape up regionally in coming years.

(USD 1 = EUR 0.916)

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